Ethereum Adviser Sues Law Firm for $100M

• Steven Nerayoff files a lawsuit against the law firm Covington & Burling.
• The case alleges that the firm mishandled Nerayoff’s defense in a 2019 extortion case.
• The senior counsel restricted Narayoff from submitting the evidence to the prosecutors.

Early Ethereum adviser Steven Nerayoff is suing law firm Covington & Burling seeking $100 million in damages, claiming they botched his defense in a 2019 extortion case. The lawsuit, filed on September 6, alleges that the firm mishandled Nerayoff’s defense case brought by the U.S. government.

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Early Ethereum advisor Steven Nerayoff filed a $100 million lawsuit against the law firm Covington & Burling. The lawsuit, filed on September 6, claimed that the law firm mishandled Nerayoff’s defense in a 2019 extortion case initiated by the US government. As per the suit, Covington’s senior counsel Alan Vinegrad insisted Nerayoff withhold from sharing videotapes and messages with prosecutors, which he believes to be irrefutable proof for his claims.

Nerayoff’s Extortion Charges and Alleged Mishandling

Nerayoff was arrested and charged in 2019 with allegedly threatening to sabotage a crypto startup unless he received a substantial ransom payment in cryptocurrency. He hired Covington for his defense but claims he was advised against submitting crucial evidence in court. In June 2022, he provided the same evidence to prosecutors, leading to the dismissal of the charges in 2023.

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The lawsuit contends that Nerayoff’s case could have been handled better and much earlier if Covington’s attorney had submitted the exculpatory evidence in 2019. Nerayoff states that prosecutors expressed disbelief at the firm’s decision not to disclose this information.

Moreover, the lawsuit alleges that Covington abruptly ceased representing Nerayoff on January 10, 2022, forcing him to incur over $1 million in additional legal fees over the next three years.

Nerayoff’s lawyer, Romeo Salta, is now seeking approximately $100 million from the law firm to compensate for the legal expenses and lost business opportunities during that period.

Covington to Vigorously Defend

A Covington spokesperson has denied the allegations, asserting that the firm plans to “vigorously” defend itself against Nerayoff’s lawsuit. While the spokesperson stated that the claims are “without merit,” attorney Vinegrad declined to comment on the matter.

Earlier this year, Nerayoff sued the US government for “maliciously” investigating and prosecuting him for nearly four years. He argued that the government arrested him despite knowing the charges were “factually and legally baseless.”